India Reclaims 5th Spot In Global Market Cap Rankings As AI-Fuelled Asia Selloff Hits Taiwan, South Korea
· Free Press Journal
India has regained the fifth position in global market capitalisation rankings after briefly slipping to seventh, as sharp corrections in Taiwan and South Korea dragged both markets lower.
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The decline was driven largely by profit-taking in artificial intelligence (AI) and semiconductor-related stocks following a prolonged global rally in the sector.
India’s total market capitalisation now stands at $5.05 trillion, while Taiwan and South Korea have fallen to sixth and seventh positions with valuations of $4.97 trillion and $4.66 trillion, respectively, both dropping below the $5 trillion mark.
The United States remains the world’s largest market, followed by China, Japan, and Hong Kong.
In June, global equity markets showed mixed performance. While Indian equities outperformed, investors across several regions booked profits in high-performing technology stocks.
At the same time, crude oil prices declined as tanker movement through the Strait of Hormuz resumed, easing supply concerns.
Sensex Declines 247 Points, Nifty Trades With Marginal Gains As Renewed Iran-US Tensions Weigh On Investor SentimentDuring the month, India’s market capitalisation rose by 2.75%, while South Korea and Taiwan recorded declines of 4.7% and 2.3%, respectively.
Other major markets showed weaker or flat performance: the US and China remained largely unchanged, Japan declined by 1.06%, Hong Kong fell sharply by 8.3%, Canada slipped 3.1%, the UK declined 1.9%, France fell 1.1%, and Germany dropped 5.6%.
Indian benchmark indices also performed strongly in dollar terms, with the Sensex and Nifty gaining 3.8% and 2.8% so far in June.
Broader markets outperformed, with the BSE MidCap 150 index rising 1.3% and the BSE SmallCap 250 index gaining 4.4%.
Market analysts attribute India’s relative strength to falling crude oil prices, improving valuations, and renewed foreign inflows.
The Nifty’s valuation multiple has moderated significantly, falling from about 24 times earnings to nearly 18 times, making equities more attractive.
Foreign institutional investors have also injected nearly $1 billion into Indian equities, while selling pressure has eased as geopolitical tensions in West Asia show signs of cooling.
Additional support has come from Reserve Bank of India measures aimed at attracting foreign investment into debt markets.
Experts also noted weakening sentiment in global AI and semiconductor stocks, particularly in South Korea and on the Nasdaq, where volatility has increased.